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Charra [1.4K]
2 years ago
7

Sky invests $90,000 today and receives a future value 8 years from now of $120,000. Interest is compounded twice per year. Her s

tated annual interest rate is _____ for this twice-a-year compounded investment.
Business
1 answer:
kirill115 [55]2 years ago
3 0

Answer:

Annual interest rate= 3.63%

Explanation:

<em>The rate of return earned on the investment can be worked out using the Future value of a lump sum formula. </em>

<em>The future value of a lump sum is the amount lump would amount to if interest is earned and compounded at a certain interest rate. </em>

The formula is

FV = PV × (1+r)^(n)  

PV = Present Value- 90,000

FV - Future Value, - 120,000

n- number of period- 8× 2 = 16 (note interest is compounded twice a year)

r- interest rate per period - ?

120,000 = 90,000× (1+r)^16

1+r)^16= 120.000/90,000= 1.333

(1+r)^16= 1.333

1+r= 1.333^(1/16)

r =1.333^(1/16) -1  = 0.01812

r =0.01812× 100= 1.812%

Bi-annual interest rate = 1.812%

Annual interest rate = Bi-annual rate × 2

Annual interest rate = 1.812% × 2 =3.63%

Annual interest rate= 3.63%

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A company that has been subject to Securities Exchange Act of 1934 reporting requirements for five years and has an aggregate wo
pickupchik [31]

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More about accelerated filer?

A publicly traded company that, as of the end of its fiscal year, satisfies each of the following requirements:

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7 0
1 year ago
Historically, demand has averaged 1447 units per week with a standard deviation of 715. The company currently has 2855 units in
Alik [6]

Answer:

c. 97.558%

Explanation:

Options are <em>"A. 50.0.% B. 2.442% C. 97.558% D.197.0% E. 47,442%"</em>

Mean = μ = 1447

Standard deviation = σ = 715

Observed value = X = 2855

Using z-score formula, Z = (X - μ) / σ

Z = (2855 - 1447) / 715

Z = 1.97

P(Z<1.97) = 0.97558

P(Z<1.97) = 97.558%

So,  the probability of a stock-out is 97.558%.

4 0
3 years ago
Explain the purposes of companies act​
Ymorist [56]

Answer:

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2 years ago
Park Co. is considering an investment that requires immediate payment of $34,000 and provides expected cash inflows of $11,800 a
Galina-37 [17]

Answer:

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Explanation:

We will calculate the net present value doing:

<em>NPV =  present value of the cash flow   - investment</em>

Investment = 34,000

Now we need to discount each cash flow at the given rate.

<u>For that,</u> we will treat the cash flow as an annuity of 11,800 for 4 year at 10% rate:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 11800

time 4

rate 0.1

11800 \times \frac{1-(1+0.1)^{-4} }{0.1} = PV\\

PV $37,404.41

<em>NPV =  present value of the cash flow   - investment</em>

<em>NPV =       37,404.41 - 34,000 = 3,404.41</em>

3 0
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